The Chinese Central Bank's ax falls on the yuan. The institute announced the largest devaluation of the national currency after that of August 2015. The new exchange rate is 6,4943 yuan to the dollar, down by about 0,60% compared to yesterday. The data is from the Trade System Foreign Exchange.
Since last year, fears for the economy and the massive flight of capital have been pushing China down this road. The yuan, also known as the renminbi, is traded in a controlled manner within a daily fluctuation range of +2/2% within the country.
According to Giuseppe Sersale, strategist at Anthilia, “if a too strong dollar strangled China and the Emerging Countries, it is not that the opposite version is of particular benefit to the global picture. What is needed in this phase of fragile growth and evanescent global demand is a balance between currencies, which avoids the accumulation of excessive stresses that end up fueling frenetic capital flows that cause volatility to explode. But it is a difficult balance to achieve, unfortunately ”.
The confirmation comes from the trend of the markets. The Tokyo Stock Exchange closed for a holiday, the concerns of the Asian Stock Exchanges are concentrated on the health of the Chinese economy: manufacturing activity, which has been declining for 14 months, is not picking up again, despite the robust injection of capital (361 billion dollars in March, three times the previous month) to stimulate recovery. Hong Kong -1,1%, also down for Australia (-0,8%) and the other markets in the area. Shanghai (-0,1%) and Shenzhen (+0,2%) were more stable.
